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Economics · 2026 · 3 marks
CBSE 2026 · Region 4 · Set 1 · Q29
(a) Anaya and Rohan owned separate farms. Anaya focused on learning modern farming techniques, training workers in crop rotation, soil management,…
Anaya and Rohan owned separate farms. Anaya focused on learning modern farming techniques, training workers in crop rotation, soil management, and pest control.
On the other hand, Rohan invested in advanced machinery, irrigation systems, HYV seeds.
“Both Anaya and Rohan invested in human capital.”
Do you agree with the given statement ? Give valid argument in support of your answer.
“Expenditure on preventive medicine, curative and social medicine helps in building human capital and economic development.”
Do you agree with the given statement ? Give valid argument in support of your answer.
Marking-scheme solution
No. Rohan invested in physical capital by purchasing advanced machinery, irrigation systems and HYV seeds, which are tangible assets used in the production process.
In contrast, Anaya invested in human capital as she enhanced knowledge and skills by learning modern farming techniques and training workers in crop rotation, soil management and pest control.
Yes. Expenditure on health as a source of human capital formation, in an economy, may take different forms like expenditure on preventive medicine, curative medicine and social medicine, etc. A healthy person provides uninterrupted labour supply for a longer period of time. Thus, such expenditures lead to human capital formation, contributing towards economic development of the country.
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